Incoterms

The seller places the goods at the disposal of the buyer at a named place (this place may or may not be the seller’s premises). The buyer is responsible for loading, transport, export clearance, and all subsequent costs and risks.

The seller delivers the goods to the buyer:

1. If the named place is the seller’s premises: when the goods are loaded onto the transport arranged by the buyer.
2. If the named place is another location: when the goods have been loaded onto the seller’s transport, arrive at the named place, are ready for unloading, and are placed at the disposal of the carrier or another person nominated by the buyer.

From that point onward, costs and risks transfer to the buyer. 
 

The seller delivers the goods alongside the vessel at the port of shipment. From that moment, the buyer assumes all costs and risks, including loading and further transport.

The seller delivers the goods on board the vessel at the port of shipment nominated by the buyer. Costs and risks transfer to the buyer once the goods are on board.

This is the first Incoterm where the seller pays for the transport up to the destination port. While the seller is responsible for the costs, we cannot stress enough that the risk during the ocean voyage is for the buyer of the goods. So if anything should happen to the cargo during ocean transit, the buyer bears the cost. 

This is a very similar incoterm to the CFR one we just highlighted above. We stressed the fact that the risk for the transport of the goods on the vessel was for the buyer, but with the CIF incoterm it is obliged that the seller takes an insurance for the buyer at his expense. Take into account though that there is no specification on how good the insurance needs to be and that the contractual 'minimum' insurances do not cover the total cargo loss of the goods. Check out our possibilities to offer you a 110% covering insurance for your goods. Taking away your worries, that is our main goal!

With the Carriage Paid to Incoterm, the seller bears the expense of transport up to destination (air)port. However, as with CFR, the risk of the transport transfers a lot earlier. The risk may be transferred when goods are picked up at seller's premises, or at another specified place.

This is a very similar incoterm to the CPT one we just highlighted above. Again we stress the fact that the risk for the transport, transfers to the buyer before the costs do, but now with the CIP incoterm the seller is obligated to take an insurance for the buyer at his expense. Here too the Incoterm gives no instructions as to what type of insurance, so you might end up with limited liability coverage. At Embassy Freight we can offer you an all risk policy, with coverage for up to 110% of the commercial value of your goods. 

When using the Incoterm DAP in international trade, it means the seller bears the cost of transport from origin until the cargo arrives at your door. The unloading when cargo arrives at destination is for the buyer. The risk remains at shippers side until cargo arrives at destination. If during the stripping of the container the cargo is somehow damaged, this is the responsibility of the buyer. Custom clearance at destination is for the buyer as well.

A very similar Incoterm to DAP. This was DAT - Delivered at terminal - in the previous version of the Incoterms (2010). This Incoterm is most frequently used when the buyer wants to take over both cost and risk at a pre-determined delivery place, most commonly the destination terminal. 

The seller delivers the goods at the named place of destination, including transport, import duties, and customs formalities. The seller bears all risks. The buyer only needs to receive the goods.